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    UCO Bank Q3 Results: PAT jumps 110% YoY to Rs 653 crore; highest quarterly net profit in 80 yrs

    Synopsis

    At the same time, interest income rose to Rs 4,627 crore as compared to Rs 3,919 crore in the same quarter a year ago.On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 5.63 per cent of gross advances as compared to 8 per cent at the end of the third quarter of 2021-22.

    UCO Bank Q3 profit more than doubles to Rs 653 crAgencies
    Lower bad loan provisions and a sizable recovery from written off accounts helped Uco Bank report a 110% jump in its third quarter net profit to Rs 653 crore against Rs 310 crore in the year-ago period.

    “This is the highest quarterly net profit for the bank in its 80 years of existence," managing director Soma Sankara Prasad said.

    The bank's net interest margin for the December quarter was at 2.99%, an improvement from 2.84% seen in the preceding quarter.

    "We expect the NIM to stabilise at around 3% level in the next few quarters," Prasad said.

    UCO's operating profit remained almost flat at Rs 1,354 crore for the quarter under review against Rs 1,340 crore in the year ago period. Bad loan provisions were 61% lower at Rs 220 crore against Rs 565 crore in line with improvement in asset quality. Provision coverage ratio improved to 93.6% from 91.3% a year back.

    Its gross non-performing assets ratio stood at 5.63% at the end of December 2022 against 8% a year back. Net NPA ratio improved to 1.66% from 2.81%.

    The bank recovered Rs 458 crore from written off accounts, which boosted its other income and net profit.

    Net interest income for Q3FY23 rose 10.7% at Rs1,952 crore as against Rs 1,763 crore, fuelled by 20.35% growth in loan book and improved yield on advances.

    Its loan advances stood at Rs 1.51 lakh crore.

    "We see good demand from both the corporate and retail side and expect this to continue in the fourth quarter," Prasad said. Fourth quarter is traditionally a busy season for businesses.

    The bank saw its total deposits rise 11% year-on-year to Rs 2.43 lakh crore.




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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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